Monday, February 25, 2013

Federal Estate Tax made permanent

After years of instability, which gave rise to some macabre humor about heirs calculating the most advantageous expiration dates for wealthy elderly family members, the American Taxpayer Relief Act of 2012 (ATRA) establishes a permanent federal estate tax. Don't worry, most West Virginia estates will still be untaxed because ATRA also establishes a $5 million exemption. A West Virginia estate is only subject to state inheritance tax when a federal tax is imposed on it, so most of us will be unaffected by ATRA.

For those estates worth more than the $5 million exemption amount the federal tax rate will be 40%.

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